Boohoo Group Plc (LSE:DEBS), trading as Debenhams Group, has agreed to sell automation equipment at its Sheffield distribution centre and reassign the site’s lease to Primark for £90 million in cash.
The company said the proceeds will be used to reduce debt, with net debt expected to fall to a negligible level by the end of its financial year in February 2027.
Debenhams Group expects the transaction to reduce depreciation, interest and lease costs as it continues its transition towards a capital-light and stock-light marketplace business model.
The company has also entered into an agreement with a global third-party logistics provider to handle fulfilment outside its fashion operations. The arrangement will allow the group to outsource parts of its logistics operations as it reduces its reliance on owned infrastructure.
GMV Growth Accelerates in Second Quarter
Debenhams Group said gross merchandise value returned to growth during the first quarter and that the rate of growth accelerated further in the second quarter.
The company is seeking to increase the proportion of gross merchandise value generated through marketplace activity to well above 50%, with third-party brands and partners accounting for a greater share of sales through its platforms.
Debenhams Group is scheduled to provide its half-year trading update on 17 September 2026.
More about Boohoo Group Plc
Boohoo Group Plc, trading as Debenhams Group, operates online platforms across fashion, home and beauty.
Its shopping destinations include Debenhams, Karen Millen, boohoo, MAN and PrettyLittleThing.
The group is transitioning towards a marketplace-led operating model involving a greater proportion of third-party brands and partners. Its strategy includes reducing inventory requirements and the amount of capital committed to logistics infrastructure.
Leave a Reply